Annual report pursuant to Section 13 and 15(d)

Equity

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Equity
12 Months Ended
Dec. 31, 2011
Equity  
Preferred Stock [Text Block]

NOTE 8 - CONVERTIBLE PREFERRED STOCK

 

            The Series E Convertible Preferred Stock carries the following rights and preferences;

 

                        *          No dividends.

                        *          Convertible to common stock at the average closing bid price for the Company’s common stock for the 5 trading days prior to the conversion date, and is adjustable to prevent dilution.  (Convertible to 17,241,379 common shares at December 31, 2011).

*          Convertible at the Option of the Company at par value only after repayment of the shareholder loans from Joseph Fiore and subject to the holders option to convert.

                        *          Entitled to vote 1,000 votes per share of Series E Convertible Preferred Shares.

                        *          Entitled to liquidation preference at par value.

                        *          Is senior to all other share of preferred or common shares issued past, present and future.